OCR A Level Economics Macroeconomics November 2020 question paper H460/02

1 (a) Using information from the stimulus material, identify two causes of globalisation.

Cause 1

Cause 2

Using Fig. 1, explain the relationship between GDP per head and life expectancy.

Using Fig. 2, explain the difference between short run and long run economic growth.

Using information from Fig. 3, explain whether Bangladesh had a budget deficit or a budget surplus in 2017.

Using information from the stimulus material, evaluate whether a cut in corporate tax rates in

Bangladesh would benefit the UK economy.

Using information from the stimulus material, evaluate whether the gap in GDP per head

between low-income and high-income countries will narrow in the future.

2* Between 2017 and 2018, households in Denmark saved more. Household saving as a percentage of disposable income rose from 5.6 to 5.9.

Evaluate, with the use of an appropriate diagram(s), whether an increase in the amount households

save will harm an economy.

3* In 2018, the US President accused China and Russia of lowering the value of their currencies to artificially low levels.

Evaluate, with the use of an appropriate diagram(s), whether a central bank’s decision to reduce

the exchange rate to an artificially low level will benefit its economy.

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4* In recent years, the UK government has cut both corporation and income tax rates. The 2013 cut in the top rate of income tax from 50% to 45% has been estimated to have reduced government tax revenue by £8.6 bn between 2013/14 and 2017/18.

Evaluate whether a cut in direct tax rates will always reduce tax revenue.

5* Microfinance has grown significantly in recent years. There has been a growth in microfinance institutions and microfinance is now available in most developing countries.

Evaluate whether microfinance promotes economic development.

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